Today's Breakout Idea (LITH) - New Lithium Idea
This Profile Shows Explosive Upside Potential
Low Float (3.5Mn Shares)
If you're in the know, you've probably heard at least a little bit about lithium in the last few years.
This light metal has become the principal source of battery capacity in everything from electric vehicles (EVs) to cellular phones.
With a unique property acquired in Clayton Valley, Nevada, I've discovered a small up-and-comer that may be one of the most efficient and least expensive lithium extraction projects around.
Here's the really cool part... The markets don't appear to be paying attention to this company.
Lithium has been an important component of battery electrolytes and electrodes since the late 20th century, mostly due to its superior electrode potential.
People began experimenting with lithium batteries way back in 1912, but it wasn’t until the 1980's that the first lithium-ion prototype was made – a rechargeable, more stable version of previous iterations.
First commercialized in 1991 with little fanfare, the market for these lithium rechargeable batteries quickly grew into a $3Bn industry by 1998.
In 2007, driven by the heavy-duty power tool market, batteries became the major market for lithium for the first-time, accounting for 25% of all production.
Global sales of these rechargeable batteries were estimated at USD $7.7Bn in 2009.
That leads us to now and Reports and Data sharing, "The lithium ion battery market is forecasted to grow from USD $36.2Bn in 2018 to USD $109.72Bn by 2026, at a CAGR of 13.4% during the forecast period."
Consumer applications including cameras, smartphones, computer tablets, and laptops accounted for the previous lion's share of the global lithium-ion battery market revenues.
Today, and in the near future, exponential EV sales growth are almost a sure thing according to analysts.
In 2017, there were sales around 2Mn vehicles. That number could rise to an estimated 50Mn per year by 2030.
This may create a huge demand for battery-grade lithium.
“Electric vehicles are the driver. That’s where the disruption is coming from, and that’s where you will see raw material demand coming from.”
Due to all this info and even more reasons (technicals/chart below), I want to bring your attention for today, October 23rd:
--> U.S. Lithium Corp. (LITH) <--
This approximate $.35 stock may not continue trading at current levels for much longer as the demand for lithium continues to grow worldwide.
The History Of Electric Vehicles (EVs)
In September 2018, the number of electric vehicles sold throughout the world passed 4Mn — and it looks to be increasing at an exponential rate, say researchers at Bloomberg New Energy Finance.
This is a drop in the bucket compared to recent worldwide car sales of about 88Mn cars and light vehicles.
Though, things could change very soon...
2019 marks the start of an expected EV ramp-up for the world’s biggest carmakers.
For example, Volkswagen Group — which owns Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Škoda and Volkswagen — says it plans to spend more than $68.5Bn in the coming five years on EVs, autonomous driving, new mobility services and digitalization.
Volkswagen sees an EV future as inevitable and wants to “speed up the pace of innovation” from a position of strength and wants to produce one million electric cars per year globally from 2025.
Volkswagen is only one of the biggest carmaker's worldwide. It would be safe to figure that many others will be following suit.
Company Info: U.S. Lithium Corp. (LITH)
U.S. Lithium Corporation is an exploration and development company focused in North America on lithium and related resources for the rapidly growing energy storage industry.
The Company looks to capitalize on opp's within the lithium sector including providing lithium to the ever expanding next generation battery market.
Lithium demand is projected to triple by the year 2025 according to a recent report by Goldman Sachs and for many analysts is considered the new gasoline of the future.
As the demand for lithium expands, U.S. Lithium Corp intends to be an integral part of this next booming industry.
Their current focus is in the Basin and Range province of Nevada where the only producing lithium brine mine in North America, Albemarle’s Silver Peak Project, is located.
Elon, their first project, is located in Clayton Valley and is in close proximity to Silver Peak and several other active explorers and developers.
Bullish Chart + Technicals Could Lead LITH To Soar
Right now, LITH appears to be fairly undervalued with tons of potential upside.
According to LITH's chart, current trading levels are above three important points of support:
- 50-Day Simple Moving Average
- 200-Day Simple Moving Average
- 13-Day Exponential Moving Average
Why is this important? Due to these being strong levels of potential support, traders may find confidence that LITH could be ready to make a move up the charts.
If that happens, it could happen quickly as (according to Yahoo Finance), LITH has very few shares in its float (3.5Mn).
As we know with several of our recent alerts that had very few shares in their floats, volatility can be in the cards for LITH today.
With volatility comes the potential for price spiking short-term.
Since LITH is posting a 52-week high of $.84, from current trading levels (approx. $.34688 a share at writing 10/22), this new profile could be looking at upside potential in the range of 142%.
Are you focused on how big this idea could be???